CHAPTER 32 – ECONOMIC INDICATORS tsio 1. Copy and fill in the blanks.
a. An increase in the ___________ of goods and services is called inflation.
b. The ___________ rate refers to the percentage of the total labour force that is employed.
c. When interest rates are low, inflation ___________.
d. When interest rates are high, inflation ___________.
e. An increase in the value of the goods and services produced by a country in a period of time is known as ___________ ___________.
f. The total net earnings from a country’s production of goods and services in a year is called the national ___________.
g. The total amount of money borrowed by a country’s government is called national ___________.
2. Outline one impact that inflation will have on:
a. Individuals b. Businesses c. The economy.
3. Outline how an increase in unemployment affects the economy.
4. Explain how the following newspaper headline will impact the economy.
LATEST CENTRAL BANK FIGURES SHOW THAT THE INTEREST RATE ON NEW MORTGAGES HAS INCREASED
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5. Explain the difference between gross domestic product (GDP) and gross national product (GNP).
6. KKP Ltd is a manufacturer of plastics. Oil is used as a raw material in the manufacturing process. The price of oil has risen recently on the world market and the company has seen an increase in the cost of production. The company needs to increase the price of the product to cover these extra costs.
a. What economic indicator is at play here?
b. What will the effects be for KKP Ltd if it increases the price of its products?
7. The value of goods and services produced in a small county was €500,000 million in 2014 and €580,000 million in 2015. Calculate the country’s economic growth rate.
8. Outline one impact that national debt will have on:
